Question

Although I love using Credit Karma the difference in scores from the same companies are very different in real life vs on your screen. Credit Karma lists my TransUnion score as 819 on the computer screen the day before I go in to buy a car. They pull my credit at the dealership and they used Trans Union and they list me as 724. I do understand how credit works and how it is generally calculated. I am only saying that you should use Credit Karma as a good reference and not "bank" on it.

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TU has HUNDREDS of different models

Helpful to 2 out of 2 people

Credit reporting and scoring is NOT done by CK.... The information in your credit report is at the credit bureaus. AND the credit score you see here on CK is ALSO done at the credit bureaus. CK only requests that the credit bureaus release the information via their website.

When a company asks the credit bureaus for your credit report, they also ask that the credit bureaus calculate your score with one of hundreds of different calculators available at the credit bureaus. (CK chooses the VantageScore 3.0 scoring model to be used.)

Each scoring model uses gives different values to the same details listed in your credit report, meaning that one may count all closed accounts, and another may only count closed accounts with a balance still left on them, and yet another may not count closed accounts at all. It really depends on which one the lender is paying for based on their business needs. So since you can’t have a credit score without a credit report, all calculations are done by the credit bureaus at the time of the request. The lender will say something like, "this is you score directly from Transunion". But what they don’t say is that ALL credit scores are from the credit bureaus, but the one they choose to use gave you that score. (Likely because they don’t really understand where the score actually come from themselves other than TU where their company pays for it to be calculated)

I hope this helps you understand a bit more than the lenders...... And as an example ....

FICO Versions used in auto lending applications

Experian

FICO Auto Score 8 FICO Auto Score 2

Equifax

FICO Auto Score 8

FICO Auto Score 5

TransUnion

FICO Auto Score 8

FICO Auto Score 4

FICO Versions used in credit card applications

Experian

FICO Bankcard Score 8

FICO Score 3

FICO Bankcard Score 2

Equifax

FICO Bankcard Score 8

FICO Bankcard Score 5

TransUnion

FICO Bankcard Score 8

FICO Bankcard Score 4

FICO Versions used in mortgage lending applications

Experian

FICO Score 2

Equifax

FICO Score 5

TransUnion

FICO Score 4

What you REALLY need to ask is which calculator is the creditor you are applying to actually uses. Some companies may not even use FICO brand and decide to go with VantageScore instead (like CK and 2000 other lenders).

And just like different restaurants sell different pop brands like Coke-a-Cola with variations of Diet, caffeine free, or New Coke, others may instead use Pepsi Band with the same variations but COMPLETELY different taste.

So watch the main details of your score and eventually they will all report positive information.

Very good advice, many people get confused thinking that Credit Karma is giving them the scores that lenders use. Most lenders use FICO scores and those are the ones to pay attention to. It should also be noted that certain actions affect FICO scores and scores like you find on here differently. So one should not base their credit decisions on how scores on here react to certain actions.

Your Credit Scores Should Be Free. And Now They Are.

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